Module 1 - Part 3/4: How you can build wealth in the stock market

April 16, 2024

We show you how it's possible to build with in the stock market over time, the EASY way

Welcome to the EasyEquities Mentorship program, where we make investing EASY for you!

We have prepared 6 modules that we will post on FinMeUp over the month of July.

The modules are intended to give investors the necessary knowledge to start their investing journeys.

Lets get right into it!

Did you know that over 1.5 million South Africans invest using EasyEquities?

A vast majority of these investors have managed to pick up some astounding returns.

Historical performance

Figure 1 [Refer to the image attached] shows the result of R10,000/$10 000 invested in the FTSE 100, S&P 500, and Nasdaq100 indices 10, 20 and 30 years ago.

These are just some of the spectacular returns that investors have achieved. The list goes on.

 And 10 years from now, we will be showing similar examples and people would have wished they invested sooner. 

The best time to start investing was yesterday. The second-best time is today.

So, how can investors build wealth in the stock market?

 Over time, shares tend to increase in value. Lets say that Company X has a share price of R10 a share. 

The business is planning on expanding and releasing new products and this gets you excited for the future. We know that if the business continues doing well, the share price will eventually follow too. 

You decide that its time to invest in Company X with R1 000. Since the share price of Company X is R10 a share, you get 100 shares in return (R1 000 divided by R10 a share = 100 shares). 

5 years have gone by, and the business has expanded to new countries and released some hot new products. 

Since the business has done extremely well, the share price of the business has done exceptionally well too. 

The share price has gone from R10 a share to R50 a share! 

Those 100 shares that you purchased for R1 000, five years ago, are now worth R5 000 (R100 x 50 shares).

 On top of this, Company X decided to pay their shareholders dividends since they had so much spare profit. 

They declared a dividend of R5 a share. Since you hold 50 shares, they paid you R250 in dividends.

 So, you would have R5 250 from your initial R1 000 invested in just five years. Imagine what could happen after 20, 30, or even 40 years!

Are you ready to start building wealth in the stock market? 

Start now, using the link below to start with a free R50 on us!


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